Creating Paper

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Creating Paper

27. Find the cash needed by creating a low interest note secured by a property you own. Use the note as a down payment on the property you wish to purchase, or sell it to an investor for cash.

Your title company can draft the mortgage and note without an appraisal.

Include a substitution of collateral clause so you have the option to move the debt to another property, a subordination clause to secure 1st position financing, and reserve a pre-payment discount.

If you do not have a property to use this technique, find someone who does, JV with them. This is a great way to leverage transactions.

Charles Parrish

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